Here we detail about the difference between general reserve and specific reserve. General Reserve: 1. Reserve created not for any specific and earmarked purpose is known as general reserve. 2.General reserve is created to meet some future contingencies and for strengthening financial position of a business concern. 3. General reserve is utilized to meet any unknown liability. 4. In case [...]
Here we detail about the difference between revenue reserve and capital reserve. Revenue Reserve: 1. It is created out of revenue profits. 2. It cannot arise during the pre-incorporation period 3. It is created by retaining profit. 4. It can be used for payment of dividends without any precondition. 5. It is created to strengthen the financial position, to meet [...]
Here we detail about the difference between reserve and reserve fund. Reserve: 1. Reserve is the amount set aside out of profits and other surpluses. 2. The basic purpose of keeping reserve is to meet any contingent liability 3. As the amount of reserve is not kept outside the business in any form so the question of selling does not [...]